Yachting with dictatorial style

Multi-millionaires who have lost big in the credit crunch are probably on the lookout for purchases that will rebuild their self-esteem. On that front, it seems difficult to do better than buying Saddam Hussein’s yacht, which is being auctioned off by the Iraqi government.

Assets include swimming pools, a surgical theatre, a helipad, and an escape tunnel and submarine. Problems include the lack of a gym and a decor that “may not suit all tastes.” Like the baby shoes in the extremely short story by Ernest Hemmingway, the yacht was never used – apparently because Saddam was fearful that leaving Iraq would cause political instability.

This is an o.k. example of “illiquid assets” – assets that are not sold at the current market price because of the perception of increased market price in the future, and because the seller has the good fortune of not being in a situation of needing to sell. In these cases the market price is set by those who must sell because of extenuation circumstances.